Shares of Microsoft popped like champagne corks yesterday in response to Judge Thomas Penfield Jackson’s surprise decision to delay sanctions against the company while appeals are pending.

The company’s stock rocketed more than 7 percent, closing up $5.75 a share at $80.69, after reaching as high as $82 during the day.

The stock lift comes after shares of the company plunged 45 percent between March and May as investors reacted to the government’s antitrust win.

Investors are now happy that while Microsoft appeals the decision that could see it broken in two, the company will be free from interim business restraints that were due to kick in by Sept. 5.

The judge also decided Tuesday to send the case directly to the Supreme Court and let the justices choose if they want to hear it or let the appeals court rule first. A breakup is still expected to take more than a year if the case goes straight to the Supreme Court, or two years if it gets there via the appeals court.

“This was a pretty strong relief rally,” said Larry Kudlow, chief strategist and economist at ING Barings. “Any major storms have now been postponed well into next year, after the election, which was part of Microsoft’s strategy all along.”

The Supremes break from June 30 until early October, but they could be taking their Microsoft dossiers to the beach. If they move as quickly as Judge Jackson, they could conceivably decide to take the case before they break.

Now however, Microsoft can develop its business plans for at least 12 months. This leaves the company free to roll out its Windows Millennium package this fall, a consumer update of Windows 98 that is designed to help the transition into Windows 2000.

It also allows Microsoft to continue its aggressive expansion into online audio and video markets, as well as personal organizers and satellite TV infrastructure.